Watchdog Warns UK Skills Shortage Could Hold Britain's Economic Recovery Back
Britain's economic future may be looking much brighter since the financial crisis of 2008 but an employment watchdog has warned a sharp rise in skills shortages could be holding the country's recovery back.
According to a report from the UK Commission for Employment and Skills (UKCES), the number of job vacancies in England has returned to pre-recession levels.
But the organisation said the so-called "skills shortage vacancies" – where businesses cannot find recruits with the skills required – are growing twice as fast.
"Whilst the rise in the number of vacancies is a good sign that the economy is recovering, there's a real possibility that businesses might not be able to make the most of the upturn because they don't have the right people," said Douglas McCormick, a commissioner at UKCES.
He explained: "This shows that businesses need to start thinking about planning their talent pipeline now – not waiting until they are unable to fulfil contracts because of a lack of skilled staff."
The Employer Skills Survey, which questioned more than 90,000 employers, found 559,600 job vacancies in England – up 45% from 2009.
But the research also revealed the skills shortage vacancies nearly doubled over the same period, increasing from 63,100 to 124,800.
Overall, skills shortage vacancies – which occur when employers cannot find people with the right skills and qualifications to do the job – now account for more than one in five of all vacancies (22%) up from one in six (16%) in 2009.
"Employers in some sectors report persistent skills shortages which is why I have been working hard to design a skills system that is rigorous in the training it provides and responsive to the needs of employers," said Matthew Hancock, the minister for skills and enterprise.
He added: "With a record number of people in jobs as our economy continues to grow we must have a skilled workforce equipped to work in a modern economy and compete effectively in the global race."
© Copyright IBTimes 2024. All rights reserved.